We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Differentiaitng between market structures - Essay Example

Comments (0)
Summary
Output choices of firms were limited due to market demand and production function. However, not all firms respond to this limitation in the same approach. The number and size of the firms in a market or the market structure have to be taken into consideration as they may bring effect to the production and pricing decisions…
Download full paper
GRAB THE BEST PAPER
Differentiaitng between market structures
Read TextPreview

Extract of sample
Differentiaitng between market structures

Download file to see previous pages... An industry with a structure of perfect competition may be seen with a large number firms competing for consumers purchase, monopolistic competition has many while few firms are present in an oligopoly and monopoly has only one. Fruit and vegetable vendors in a marketplace are examples of perfect competition, home products producers like Unilever, Colgate-Palmolive and Procter and Gamble are under monopolistic competition, credit card companies such as Visa, MasterCard and American Express are oligopolists and Microsoft has monopolized the operating system for computers. The number of firms in an industry is dependent to the level or degree of barriers present in the market. A high level of barrier discourages if not totally eliminate new firms from joining the industry. This is true for oligopoly and monopoly. Barriers like high capital requirements, established loyalty from customers and collaboration or cartel may deter entrance of new or smaller firms. On the other hand, a lower degree to the point of absence of barrier may encourage the new entrants. A perfectly competitive market has no barrier at all, prices are set by the market itself and so the competition, price and non-price, is very healthy. A low level is observed in a monopolistic competition causing new firms to be attracted in joining the industry. The level of market power that a firm possesses reflects its control over price. However, this power depends on factors like the numbers of producers, the size of each firm, barriers to entry and the availability of substitute goods. With the existence of one or few producers, the power to control the market is automatically granted. The size of the firm relative to the size of the product market can affect its market power. A big firm could possess a small power if it is in a large industry but a small one could hold a lot of power if it is a small market. The ease or difficulty of entry into an industry limits the ability of a powerful firm to dictate prices and flows of products (Schiller, 2006). If new firms will be willing to enter the market, share in the spoils and succeeded, the market power will also be distributed among the firms in the said market, otherwise the power will remain concentrated in the big players. With the fourth determinant, if there will be substitute goods that customers could avail of, prices will not be set at very high level and so they can decide to switch or choose the closest substitutes. The oligopoly and monopoly both hold substantial power to control the market, from the output production to dictation of prices. Monopolistic competition may hold some but the firms under perfect competition holds no power at all. As in other industries, the market structure of the computer industry has evolved over time. It was never a monopoly, nor was it ever a perfect competition (Schiller, 2006). It was more of a monopolistic competition. This market structure is characterized by several sellers producing the same products that are slightly differentiated. Apple Inc. was one of the first companies who dominated this industry. Its success and high profits attracted other producers of microcomputers to imitate them. With the entry of over 250 firms between 1976 and 1983, the industry became more competitive but not perfectly competitive. Prices were pushed downward and products were improved because of the increased ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Differentiating Between Market Structures
The paper will analyze the market forces of the company and the associated competitive strategies. The market structure where the company operates will also be examined. Market Analysis The company has been successful in catering the customers. The businesses specialize in hiring chefs and train them to serve the purpose.
4 Pages(1000 words)Essay
Market Structures in Sony Corporation
A Sony Corporation is a leading manufacturer of electric electronic gadgets all over the world such as music, online business, motion pictures, television, and computer entertainment. The organization has gained recognition throughout the world following its high awareness of products to the customers.
4 Pages(1000 words)Essay
Differentiating Between Market Structures in an Organization
Coca Cola holds a marketplace leader position in the entire oligopoly market foundation, where there are barely any key market players and scarcely any stress from potential opponents. Coca Cola is a primary or a manufacturing industry. It depicts a kinked demand curve, augmented opening barriers, augmented cost sensitivity and interest group (Sutton, 2012).
3 Pages(750 words)Essay
Differiating Between Market Structures
al, 2011). Therefore, market structure affects the market outcomes by influencing opportunities, motivations and decisions of vast industries participating in the market. The aim of market structure analysis is to isolate the effects in an attempt to predict and explain the market outcome.
4 Pages(1000 words)Essay
Differentiating Between Market Structures
Typical fast food restaurants serve snacks like fried chicken, hamburgers, donuts and meat pies. In addition, these outlets provide a wide range of carbonated drinks and deserts to consumers. Most people, especially college students and working class professionals may lack time to prepare conventional breakfast meals.
5 Pages(1250 words)Coursework
Market structures
Therefore the market structures of an economy can be categorized under the following types. Perfectly Competitive Market In a perfectly competitive market there are a large number of buyers and sellers and therefore the equilibrium price and quantity in the market would be determined by the combined forced of demand and supply.
11 Pages(2750 words)Essay
Market Structures
In spite of being close substitutes, the products can be differentiated and advertising and branding plays a major role in this type of market. A large number of sellers exist in the market. The market structure is
3 Pages(750 words)Essay
Main differences between perfect competition and monopoly market structures
The perfectly competitive market structure is very difficult to achieve and is, therefore, compared as the benchmark for other forms of market structure. The characteristic features of a perfectly
4 Pages(1000 words)Essay
Main differences between perfect competition and monopoly market structures
Firms that are perfectly competitive have many competitors because they offer almost the same products. These market structures have no barriers to
4 Pages(1000 words)Essay
Market Structures
In economics, market structure is the feature of a particular market in the economy. The features of a market can be organizational, competitive, or any other characteristics that define the commodity market. The yardstick that economists use in defining market structures is the pricing models and the nature of competition in a particular market.
2 Pages(500 words)Essay
Let us find you another Essay on topic Differentiaitng between market structures for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us